In a perpetual inventory system the cost of goods sold under the FIFO method is based on the cost of the latest goods on hand during the period.

Name: In a perpetual inventory system the cost of goods sold under the FIFO method is based on the cost of the latest goods on hand during the period.
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In a perpetual inventory system using the FIFO (First-In, First-Out) method, the cost of goods sold is based on the cost of the oldest inventory items purchased or produced, not the latest.

In a Perpetual Inventory System the Cost of Goods Sold